Brazil Oil Firm Petrobras Slowly Rising From Pits Of Hell

ForbesBrazil’s beat-up oil firm Petrobras is slowly rising from its self-created pit of hell.

Yes, its rear-end is still ablaze, and this is a fairly weak country with loads of political strife to drag it back down. But the bad news has got to be fully baked in now. (Nobody ever really knows for sure.) The worse case scenarios are largely out of Brazil’s control. But the one domestic matter likely to push Petrobras shares back under $10 — where it has been mostly parked since 2014 — is a sure-fire victory for Brazil’s former president Luiz Inacio Lula da Silva.

Lula is seen by at least half the country as the reason why Petrobras and the country are in this mess. Petrobras is the corporate sponsor of this long and tiring soap opera known as Lava Jato, or Car Wash in Portuguese. It’s a political corruption story so massive, that it brought down a sitting president in Brazil, and knocked out a vice president in Ecuador just last month. Some of the country’s A-list executives like Marcelo Odebrecht are in jail. Superstar politicians like Eduardo Cunha are also in jail. Brazil’s reputation, and Petrobras’s reputation by default, lies in ruin. It is this scandal that has Petrobras trading at such a deep discount. …

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